The Philippines’ Social Security System (SSS), the country’s largest pension fund, says net income in the first half of 2019 increased more than five-fold year-on-year, largely due to increased contributions from members.
The fund for private sector employees posted a net income of 15.32 billion pesos (US$292.81 million) in the six months to June 30, sharply up from 2.83 billion pesos in the same period of 2018.
Revenue jumped 20.91% year-on-year to 115.53 billion pesos, with 99.08 billion pesos coming from members’ contributions and the rest from investments and other income.
"The contributions collected from January to June 2019 surpassed last year’s actual collections of 82 billion pesos. This is primarily due to corporate collection efforts as well as the increase in the contribution rate and in the maximum and minimum salary credit effective April 2019," SSS President and Chief Executive Officer Aurora C. Ignacio says in a statement on August 21. The monthly salary credit is the compensation base for contributions and benefits.
The monthly contribution rate, shared between employers and employees, will increase to 15% by 2025 from 12% this year and 11% in 2018 under new legislation which became effective this March.
The new law also makes it mandatory for Filipinos working abroad to contribute to the SSS. Contributions from these workers were previously voluntary.
Ms. Ignacio says the SSS had 542.27 billion pesos of total assets as at June 30, up 6.02% from 511.47 billion pesos a year ago.
"With our strong financial performance this semester, we are hoping to further strengthen the fund and ensure the continued service and providing for more and more members in the future until perpetuity," she says.